Orion180 Insurance Raises $240 Million in IPO Priced Below Range

Orion180 Insurance raised $240 million in its U.S. initial public offering, pricing the deal below its marketed range as it joins a growing number of insurers testing investor appetite.

The Melbourne, Florida-based company will begin trading on the Nasdaq on Friday under the ticker symbol "OIG".

IPO Details

Orion180 priced its offering on Thursday, according to a report from Reuters. The final terms of the deal were:

• Shares Sold: 20 million
• Price per Share: $12
• Target Range: The final price was below the company's indicated range of $15 to $17 per share.

Lead book-running managers for the offering included RBC Capital Markets, UBS Investment Bank, and Raymond James.

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Insurance Sector Heats Up

The IPO comes as the fall listing season gains momentum, particularly within the insurance sector. Orion180's debut follows the launch of an IPO roadshow by CVC-backed Bamboo Insurance, which is seeking to raise up to $700 million. Additionally, Hellman & Friedman-backed Hub International confidentially filed for an IPO in June.

Nicholas Einhorn, vice president of research at IPO-focused research firm Renaissance Capital, noted that both Orion180 and Bamboo are citing fast growth and lower-than-average loss ratios driven by their underwriting platforms, which could appeal to investors. "But we’ve seen in the last few years that investors in insurance IPOs scrutinize the companies closely and those companies have sometimes had to prove themselves post-IPO," Einhorn said.

Company Background

Founded in 2018 by Kenneth Gregg, Orion180 provides excess and surplus lines homeowners insurance. The company operates across 14 U.S. states, with its key markets in Texas, California, and Florida.